Appliance maker Gorenje plans to transfer premium water heater manufacturing from its Ljubljana, Slovenia plant to the Stara Pazova, Serbia, and will eventually close down the Ljubljana plant.
Gorenje, which is based in Velenje, Slovenia, said the plant in Stara Pazova offers lower manufacturing costs and has been successfully making lower-value-added Tiki water heaters for the last four years. Bringing high-capacity water heater manufacturing into the Serbian plant is intended to improve profitability. The Serbian plant will be expanded and outfitted with new equipment, some of it transferred from the Ljubljana plant.
The project, scheduled for completion by the end of 2010, will also be supported Serbian regional development funds. On Sept, 2, 2010, Serbian Minister of Economy and Regional Development, Mr. Mdađan Dinkić, and Gorenje Management Board member Mr. Branko Apat signed an agreement in Stara Pazova that allocates €1 million for development of the project.
to Daily News